What is SaaS – Learn Software As A Service

What is SaaS ? Software as a service (SaaS) is cloud computing model users can use the application without  worrying about any infrastructure. In simple terms SaaS is a form of cloud computing where the providers (like AWS, Azure) offers application software to clients users and manages all the physical and security, software resources used by the application.

There are 3 main types of cloud computing modals – SaaS (Software as a Service), PaaS (Platform as a Service) and IaaS (Infrastructure as a Service). We will deeply understand about SaaS

SaaS definition

SaaS allows users to access cloud based application directly via internet. Instead of installing or maintaining the application you can simply use it. Considering example Gmail for business. you can create free account on Gmail, you can access all emails without worrying about hosting, database, storage and security. This is what called as SaaS. Where you are just using piece of software without any huge expenditure.

If we look into the history, SaaS as we know it today began in 1999 when Salesforce launched its cloud-hosted customer relationship management (CRM) system delivered via web browsers. This shift has started with numerous benefits, including cost savings, scalability, and enhanced accessibility.

How SaaS Works?

Using SaaS product reduces users upfront costs by eliminating the need to permanently purchase software or invest in a IT infrastructure like hard Disk, Data center, Server, Security as is the case with traditional software.

If you look above image, everything application to networking is managed by SaaS provider.

Consider you are using box.com for file storage. Box for business is SaaS product. They have physical data centers, thousands of SSD storage, Servers (Compute), Network components etc. They manage everything from their side. While using their software you don’t have to worry about all infrastructure. When you upload any file on box.com everything will be managed by their team only. This is how SaaS works. You only use ready made infrastructure for your business or personal use.

The application will be accessible to any device with a internet connection. SaaS applications are typically accessed via web browsers or mobile apps.

Best SaaS examples

Google Workspace – provide email hosting related services
Salesforce – Provides CRM software
Zoom – Helps to mange meetings and connect people within organization.
Slack – messaging application
Mailchimp – Email marketing service

All above examples are ready to use software. You can use then free or pay as you go.

What are the Benefits of SaaS

• Low Cost – You don’t have to purchase servers, storage devices. You can use product with low initial cost.
• Scalability – You can start using application from single user. This means that as your business expands, you can adjust the system to accommodate more users, handle larger amounts of data, and provide additional features. It’s all about flexibility!
• Accessibility – Just connect to the internet and you can access apps from anywhere anytime.
• Security – you don’t have to worry about security. That SaaS company will take care of everything from physical to digital security.
• Automatic Updates – As technology changes everyone needs to walk with. These SaaS companies always keep their apps updated so that you can focus on own management.
• Less Workforce – Everything is done by a SaaS company, so you will not require additional resources for development and management.
• APIs and Integrations – SaaS applications often provide APIs (Application Programming Interfaces) to help integration with other software.

Disadvantages of SaaS

Data Security and Privacy – Storing sensitive data such as your clients data off-premises (SaaS Company Data Center) raises concerns about data breaches and compliance with privacy regulations. Users must ensure their SaaS providers adhere to strict security standards. Always prefer high standards and certified vendor.

Less Customization – While SaaS solutions are generally configurable, they may not offer the same level of customization as on-premises, potentially requiring businesses to adapt their processes. If you required additional feature, there will be no guarantee from company.

Vendor Lock-in period – Migrating from one SaaS provider to another can be complex and costly, leading to potential vendor lock-in. Companies must carefully evaluate long-term commitments.

SaaS Pricing

SaaS pricing is depend on product to product. Pricing can be pay as you go, pay per user, one time fee, storage or compute tiers etc.

SaaS has fundamentally transformed the software industry, offering businesses a flexible, cost-effective, and scalable alternative to traditional software models.